The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created in 1967 to protect the money you deposit in member financial institutions in case of their failure.
CDIC’s members are banks, trust companies, loan companies and cooperative credit associations that take deposits. The complete list of members can be found out at the CDIC website.
WHAT DOES CDIC INSURE?
- CDIC insures eligible deposits you make with our members. Insurable deposits include: savings accounts and chequing accounts;
- term deposits, such as guaranteed investment certificates (GICs) and debentures issued by loan companies;
- money orders, travellers’ cheques and bank drafts issued by CDIC members and cheques certified by CDIC members; and
- accounts that hold funds to pay realty taxes on mortgaged properties.
To be eligible for deposit insurance protection, your deposit must be payable in Canada, in Canadian currency. Term deposits must be repayable no later than five years after the date of deposit.
Please note that Not all deposits and investments offered by our members are insurable. For example, CDIC does not insure:
- foreign currency deposits (e.g., accounts in U.S. dollars);
- term deposits with a maturity date of more than five years from the date of deposit;
- debentures issued by banks, trust companies or cooperative credit associations;
- bonds or debentures issued by governments and corporations;
- Treasury bills; and
- investments in mortgages, stocks or mutual funds.
WHAT IS THE MAXIMUM INSURANCE PROTECTION?
Basic Protection
The maximum basic protection for eligible deposits is $100,000 (principal and interest combined) per depositor in each CDIC member institution. Deposits are not insured separately if made at different branch offices of a member.
Separate Protection
CDIC insures eligible deposits separately in each of the following cases:
- savings held in one name;
- savings held in more than one name (joint deposits);
- savings held in trust for another person;
- savings held in registered retirement savings plans (RRSPs);
- savings held in registered retirement income funds (RRIFs);
- savings held in tax-free savings accounts (TFSAs); and
- savings held for paying realty taxes on mortgaged properties.
You are responsible for ensuring that the member institution’s records include all information required for the separate protection of these deposits (see following sections for details).
Joint Deposits
Deposits you own jointly with someone else are insured separately from deposits in your own name, provided that the records of the member institution:
- indicate the deposits are owned jointly; and
- include the name and address of each joint owner.
The maximum insurance for all deposits having the same joint owners at each member institution is $100,000 (collectively, not per individual owner).
Trust Deposits
Deposits held in trust are insured separately from deposits owned personally by the trustee or the beneficiary(ies) provided that the records of the member institution:
- state that the deposit is held in trust;
- identify the name and address of the trustee(s); and
- identify the name(s) and address(es) of the beneficiary(ies).
If a trust deposit is held for more than one beneficiary, the dollar amount or percentage owned by each beneficiary must be identified on the CDIC member’s records each year as of April 30. Each beneficiary’s share then is insured up to $100,000.
For more information on CDIC, please visit CDIC’s Website.